India Inc has given a pat on the back to the Modi Government for its performance on the economic front. The government, which completes one year in office on May 26, is expected to push reforms in key areas such as rural economy, road, power, coal, non-renewable energy and real estate and housing.

Sumit Mazumder, President, Confederation of Indian industry (CII), in a statement, said: “The government has exceeded our expectations and has achieved more in the first year than any other government has in the first year.”

He said the government’s “stress on governance and tax administration for a non-adversarial, corruption-free and predictable policy regime has greatly buoyed investor sentiments”, as has its “strong action” to pass critical Bills through Parliament, rapid rollout of campaigns for financial inclusion, social security and direct transfer of subsidies, initiatives in power, coal and mining sectors among others. Industry chamber Assocham, which gave seven out of 10 for the one-year performance of the Modi government, said it expects some major initiatives in key sectors such as road, power, coal, non-renewable energy, to be essentially led by public sector investments in the next two quarters.

Rural economy

Assocham President Rana Kapoor said: “The rural economy needs immediate support in the absence of market risks and unfavourable weather conditions, with attendant issues for a host of industrial sectors like farm equipment, motorcycles, sugar mills, food processing and fertilisers.”

He said select sectors of the economy such as housing, real estate, banking and telecom are still under stress. “Of late, merchandise exports are also causing some anxiety with slowdown in global demand,” he said in a statement.

Related Topics
comment COMMENT NOW